Third Schedule Sales Tax: Retail-Packed Goods Added in 2026

Full Article

The words “sold in retail packing” are part of many of the new entries. A bulk input and a consumer pack should not be assigned the same Third Schedule treatment without checking the entry.

Examples of added goods

The additions include specified retail-packed fats and oils, confectionery, pasta, sauces, household plastic articles, personal-care preparations and several household products. Entries also cover specified bags, footwear and ceramic goods. The Act supplies descriptions and tariff headings; this is not a rule that every consumer product moves into the schedule.

An important footwear condition

The footwear entry contains an exception where the manufacturer exclusively sells through digitally integrated, POS-compliant retail outlets. Establish the factual sales arrangement before relying on that exception.

Higher rates are preserved

The note states that an already notified rate above 18% continues after inclusion in the Third Schedule. Inclusion should not be treated as an automatic reduction to 18%.

Update product records carefully

Map each SKU to its legal description, heading and packing condition. Review applicable retail-price invoicing and labeling requirements and retain the mapping with the tax working papers. Avoid a blanket system change based on a broad category such as household goods.

Source and scope

Finance Act 2026, official FBR gazette, PDF pages 22-24. Text reviewed on 14 October 2026. This explains the enacted amendment; a notification-dependent procedure must be checked separately before use.